Hired & Non-Owned Auto Insurance for Myrtle Beach Businesses

What Is Hired and Non-Owned Auto Insurance?

Hired and non-owned auto insurance protects your business from liability when employees drive vehicles your company doesn't own. This coverage applies in two common scenarios: when employees use their personal cars for work purposes (non-owned auto), and when your business rents or borrows vehicles (hired auto). If an accident happens during business use of these vehicles, your company faces liability—and hired and non-owned auto coverage responds.

For Myrtle Beach businesses that don't own a fleet of company vehicles, this coverage fills a critical gap. Your employees likely drive for work more than you realize—picking up supplies, meeting clients, making bank deposits, traveling between job sites. Every mile creates liability exposure that hired and non-owned auto insurance addresses.

Why Myrtle Beach Businesses Need Hired and Non-Owned Auto Insurance

Even businesses without company vehicles face significant auto liability exposure. Hired and non-owned auto coverage protects against these risks:

• Your business is liable for employee accidents. When an employee causes an accident while driving for work—even in their own car—your company can be sued under vicarious liability. The injured party's attorney will pursue the business, not just the employee.


• Personal auto policies have gaps. Many personal auto policies exclude or limit coverage for business use. If an employee's insurer denies a claim because the accident occurred during work activities, your business is exposed.


• Employee coverage may be inadequate. Even when personal policies do cover business use, limits are often minimal—$50,000 or $100,000. A serious accident can generate claims many times that amount. Hired and non-owned auto coverage provides excess protection.


• Rental car situations create exposure. When employees rent vehicles for business travel or you rent trucks for deliveries, the rental company's insurance is limited and expensive. Hired auto coverage provides better protection at lower cost.


• Contract requirements demand it. Many commercial clients in South Carolina require vendors to carry hired and non-owned auto coverage before working on their properties or projects.

How Does Hired and Non-Owned Auto Insurance Work?

Hired and non-owned auto coverage functions as excess liability insurance over the vehicle owner's primary policy:

The vehicle owner's policy responds first. If an employee causes an accident in their personal car, the employee's personal auto policy pays claims up to its limits.

Your hired and non-owned coverage pays the excess. When the personal policy limits are exhausted—or if the personal policy denies the claim—your business's hired and non-owned auto insurance kicks in to cover the remaining liability.

Your business gets direct protection. When your company is named in the lawsuit (which is typical), hired and non-owned auto coverage pays for your defense and any judgment or settlement against the business.

Hired Auto Coverage

The hired auto portion of your policy covers vehicles your business rents, leases, or borrows on a short-term basis. Common scenarios include:

• Rental cars for business travel


• Trucks rented for moving equipment or inventory


• Temporary vehicle rentals while company vehicles are being repaired


• Vehicles borrowed from other businesses or individuals for specific jobs

Hired auto coverage typically includes liability protection. Physical damage coverage for the rented vehicle itself can be added for an additional premium—often cheaper than the rental company's damage waiver.

Non-Owned Auto Coverage

Non-owned auto coverage applies when employees use their personal vehicles for business purposes. This includes:

• Driving to client meetings or job sites


• Running errands—bank deposits, supply pickups, post office trips


• Delivering documents or small packages


• Traveling between work locations


• Any business-related driving beyond the normal commute

Non-owned auto coverage does not include physical damage to the employee's vehicle. If an employee wrecks their car during a work errand, their personal auto policy covers the vehicle damage. Your non-owned auto coverage addresses liability to third parties.

Who Needs Hired and Non-Owned Auto Insurance?

Almost every business has hired and non-owned auto exposure. Consider whether any of these apply to your Myrtle Beach operation:

Businesses without company vehicles. If your company doesn't own vehicles but employees occasionally drive for work, you need non-owned auto coverage. This includes most professional service firms, small retailers, and office-based businesses.

Companies with employees who travel. Sales representatives, consultants, service technicians, and others who visit clients using personal vehicles create non-owned auto exposure for your business.

Operations requiring rental vehicles. If you rent trucks for deliveries, vans for events, or cars for business travel, hired auto coverage protects against liability during that rental period.

Businesses using delivery services. When your employees make deliveries—even occasionally—in personal vehicles, non-owned auto coverage is essential.

Any business with driving employees. If employees ever drive for work purposes beyond their normal commute, hired and non-owned auto insurance should be part of your coverage.

Hired and Non-Owned Auto vs. Commercial Auto Insurance

These coverages address different exposures and often work together:

Commercial auto insurance covers vehicles your business owns, leases long-term, or has titled in the company name. It provides both liability coverage and physical damage protection for those specific vehicles.

Hired and non-owned auto insurance covers liability for vehicles you don't own—rentals and employee personal cars used for business. It doesn't cover physical damage to those vehicles and functions as excess over the owner's policy.

Many South Carolina businesses need both coverages. A contractor with company trucks needs commercial auto for those vehicles plus hired and non-owned auto for when employees use personal cars to pick up materials or run to the supply house.

Where to Add Hired and Non-Owned Auto Coverage

Hired and non-owned auto coverage can be added to your insurance program in several ways:

General liability endorsement. Many Myrtle Beach businesses add hired and non-owned auto as an endorsement to their commercial general liability policy. This is common for businesses without owned vehicles.

Business owner's policy endorsement. If you have a BOP, hired and non-owned auto coverage can typically be added as an endorsement to that policy.

Commercial auto policy. Businesses with owned vehicles often include hired and non-owned auto coverage within their commercial auto policy, keeping all auto-related coverage together.

Standalone policy. In some cases—particularly for businesses with significant exposure—hired and non-owned auto may be written as a separate policy.

How Much Does Hired and Non-Owned Auto Insurance Cost in South Carolina?

Hired and non-owned auto coverage is typically affordable, especially for businesses with limited driving exposure. Premium factors include:

• Number of employees. More employees generally means more potential drivers and higher premiums.


• Industry and operations. Businesses with frequent client visits, deliveries, or field work pay more than office-based operations.


• Coverage limits. Higher liability limits increase premium costs.


• Claims history. Prior auto-related claims affect pricing.


• Whether hired auto physical damage is included. Adding coverage for damage to rental vehicles increases premium.

Many small Myrtle Beach businesses pay $200 to $500 annually to add hired and non-owned auto coverage to an existing policy. The protection this provides against potentially catastrophic auto liability claims makes it one of the most cost-effective coverages available.

Why Work with Moore & Associates for Hired and Non-Owned Auto Insurance

Moore & Associates has served Myrtle Beach businesses since 1979. As an independent insurance agency, we work with multiple carriers to structure hired and non-owned auto coverage that fits your operations. We can add this coverage to existing policies or find standalone options when that makes more sense.

Our local agents understand the driving exposures facing South Carolina businesses. We help companies from Conway to Pawleys Island evaluate their auto liability gaps and ensure employees driving for work don't create unprotected exposure.

Get a Hired and Non-Owned Auto Insurance Quote in Myrtle Beach, South Carolina

Our hired and non-owned auto insurance agents serve Myrtle Beach, South Carolina and surrounding areas including North Myrtle Beach, Atlantic Beach, Conway, Surfside Beach, Murrells Inlet, Litchfield, Pawleys Island, and Georgetown. Contact Moore & Associates today for a free quote.